As we covered here, The Perth Mint Gold Token could prove to be an alternative to U.S. dollar-based stablecoins, such as Tether. While Tether is backed by dollars in a U.S. bank account, the Perth Mint gold token is backed by gold held by one of the most renowned precious metals refineries in the world.
GoldSilverBitcoin fielded answers about the Perth Mint Gold Token from the Chairman of TCM Capital, Steve Bellotti. TCM Capital AM Pty Ltd is the Advisor to the PMGT project.
What is surprising, ironic, novel or controversial about PMGT?
PMGT has a very distinctive feature that no other gold product has. An irrevocable right to switch back into PM Gold Pass and have the WA Govt backing/guarantee. Also, if for any reason, you could not get liquidity on an exchange you can get liquidity through GP. It’s the best of the old world and the new Blockchain world.
What makes Perth Mint so open to innovation?
PM have been open to digital gold for a while now, e.g. through their Depository Online product and then GoldPass. This is just a further step, using Blockchain
How does blockchain complement the current institutional gold market?
As it gains liquidity it will draw all types of traders/investors to use it as speculative, hedging and arbitrage tools. Due to PMGT being physically deliverable and thus fungible, it can be traded directly against other institutional products.
What are some of the ways in which the gold market can be innovated upon via digital and/or blockchain technology?
It’s the next ETF equivalent and potentially a truly global currency, now that gold can be digitised.
How did the invention of Bitcoin and blockchain technologies impact the gold market?
Has not really, to date – other than BTC being compared to gold and referred to as “digital gold” by protagonists. It’s possible that millennials will favor BTC over gold but, by digitising gold on the blockchain, you open up the entire world to accessing and owning gold (which has been an accepted currency for more than 5,000 years).
Is there any breaking news you are keeping an eye on at the intersection of gold and blockchain?
PMGT is the lead breaking news story and the most well credentialed product in this space.
What led you to want to work at the intersection of gold and blockchain?
All assets will be tokenized, eventually. Gold is well understood and accepted as a store of value and lends itself well to digitisation, due to its own unique characteristics.
What are some of the challenges you’ve faced bridging the gap between blockchain and gold?
Blockchain and its technological characteristics are still not well understood and it’s very early in the evolution of the space, generally – which has been a challenge for all of the groups that have been looking at the opportunity. Bringing a highly regarded and authorised gold refiner/exporter together with the right technology team and experienced capital markets executives has been a fundamental differentiator for PMGT.
What are some other areas of tokenization that you believe have great potential to transform their niche?
Other precious metals, commodities, real estate, any type of registry, official records (i.e. medical and university transcripts), data, etc.